Citigroup Inc. appointed a new Chief Risk Officer on Friday amid speculation that bank write-downs due to mortgage-related investments may lead to the company's first quarterly loss.
The new officer, Jorge Bermudez, who has been working with Citibank for over 30 years, was appointed to replace David Bushnell. He will be expected to apply his skills in risk management and operations to help the bank regain profits.
Citigroup shares fell 1.7 percent to close at $34 at the end of regular trading on the New York Stock Exchange.
Bad bets on the subprime mortgage market may result in as much as $11 billion of write-downs. and these losses are on top of $3.15 billion of write-downs on subprime mortgages and leveraged loans reported for the fourth quarter. Citigroup has appointed a risk management committee to respond to the problems.